Financial analysts remain optimistic about the state of the digital assets markets in the midst of Brexit. According to a new report by Cindicator, a blockchain market intelligence startup, 63% believe that the UK withdrawal from the European Union will have a positive impact on cryptocurrency prices, and 74% are considering holding cryptocurrency in their portfolio, along with other assets such as commodities, stocks and cash.
Compiled by Cindicator Analytics, a team of professional financial analysts, and Cindicator’s analytical platform, the report[1] summarizes several key findings from a study conducted by the team to gauge the sentiment of the community on Brexit.
The study found that financial analysts are confident that, in the event of a hard Brexit, investors would turn to crypto as an alternative to the pound and will search for ways to diversify out of it into other currencies as well as store of value commodities.
They predict that businesses would experience rising costs to conduct cross-border trade, which would eventually cause a downturn in the financial markets. Investors would either invest in low-yield but reliable investments such as bonds, or find opportunities in markets with growth potential.
In contrast, 18.5% of forecasters believe that Brexit will somewhat negatively impact the crypto market, at least in the short term. This would be especially true in the event of a disorderly Brexit, which would be very damaging to the UK economy and its financial markets, and could trigger a sell-off in the stock markets. The same scenario could play out in the crypto markets in the short term, they said.
The study also assesses the sentiment of analysts on the implications of Brexit on the regulatory landscape of cryptocurrencies. 47% are optimistic that post-Brexit Britain could be inclined to take a progressive stance towards cryptocurrency regulation and enable blockchain innovations, which
